Use this list to work out which payments count as ordinary time earnings (OTE) or salary and wages for super guarantee.
About payment types
As an employer, you use:
- OTE to work out the minimum super guarantee contribution for your employees. OTE is the amount you pay employees for their ordinary hours of work, including things like commissions and shift loadings.
- salary and wages to work out the super guarantee charge. You only need to do this if you missed paying the minimum super guarantee contribution by the due date. Salary and wages are similar to OTE but also includes any overtime payments.
payment types
overtime
| Payment | Salary or wages | OTE | |
|---|---|---|---|
| Overtime hours over and above the ordinary hours stated in an award or agreement | Yes | No | |
| Overtime where the ordinary hours of work are not stated in an award or agreement, or not separated from other hours | Yes- all hours worked | Yes- all hours worked |
Casual work, piece work and commissions
| Payment | Salary or wages | OTE | |
|---|---|---|---|
| Casual employee shift loadings | Yes | Yes | |
| Casual employee overtime payments | Yes | No | |
| Piece-rates – no ordinary hours of work stated | Yes | Yes | |
| Commission | Yes | Yes |
allowances
| Payment | Salary or wages | OTE | |
|---|---|---|---|
| Allowance that are not a predetermined amount to offset a particular expense (for example, allowances for paperwork completion) | Yes | Yes | |
| Allowance by way of unconditional extra payment (for example, the employee has complete discretion on whether to spend the allowance) | Yes | Yes | |
| Expense allowance expected to be used in full | No | No | |
| Danger or site allowance (these are OTE unless they are intended to offset particular expenses) | Yes | Yes | |
| Retention allowance | Yes | Yes | |
| On-call allowance outside ordinary hours of work | No | No | |
| Hourly on-call allowance for ordinary hours of work for doctors | Yes | Yes |
expenses
| Payment | Salary or wages | OTE | |
|---|---|---|---|
| Reimbursement of expenses, including travel costs | No | No | |
| Payment for unfair dismissal | No | No | |
| Workers’ compensation – returned to work | Yes | Yes | |
| Workers’ compensation – not working | No | No |
bonuses
| Payment | Salary or wages | OTE | |
|---|---|---|---|
| Performance bonus | Yes | Yes | |
| Christmas bonus | Yes | Yes | |
| Bonus labelled as ex gratia but in respect of ordinary hours work | Yes | No | |
| Bonus in respect of overtime only | Yes | No |
leave
| Payment | Salary or wages | OTE | |
|---|---|---|---|
| Annual leave | Yes | Yes | |
| Annual leave loading – clearly linked to lost opportunity to work overtime | Yes | No | |
| Annual leave loading – all other | Yes | Yes | |
| Family and Domestic Violence leave | Yes | Yes | |
| Sick leave | Yes | Yes | |
| Parental leave – e.g. maternity leave, paternity leave, adoption leave | No | No | |
| Ancillary leave – e.g. jury duty, defence reserve service | No | No | |
| Long service leave | Yes | Yes |
termination payments
| Payment | Salary or wages | OTE | |
|---|---|---|---|
| Termination payments – in lieu of notice | Yes | Yes | |
| Termination payments – unused annual leave, long service leave or sick leave | Yes | No |
This article is for general information only. It does not make recommendations nor does it provide advice to address your personal circumstances. To make an informed decision, always contact a registered tax professional.